One of the largest corporate renewable power supply deals in India under captive model
India, August 04, 2022
DCM Shriram Ltd. (DCM Shriram), a leading business conglomerate with a group turnover of ₹9,849 crore, and ReNew Power (“ReNew” or “the Company”) (NASDAQ: RNW, RNWWW), India’s major renewable energy company, today announced signing of two Captive Power Agreements (CPAs) that will see 50 MW of renewable energy supplied from ReNew’s two upcoming projects in Bhavnagar, Gujarat, to DCM Shriram’s Chlor-Alkali manufacturing facility in Bharuch district, Gujarat.
The combined transaction is one of the largest corporate renewable power supply deals in India under an OpEx (operating expenses) with a captive model.
Speaking on the occasion Mr. Ajay S. Shriram, Chairman and Sr. Managing Director, DCM Shriram Ltd., said, “We as a group are committed to improving our energy footprint and this is a step in that direction. We are happy to collaborate with ReNew Power in our journey towards renewable energy for our Chlor-Alkali manufacturing facility at Bharuch, Gujarat.”
He added, “With a long-term commitment towards ESG, the Captive Power Agreements for green energy have been signed for 25 years and will mitigate ~2,25,000 tCO2e (carbon emissions) annually.”
Speaking on the CPAs, Mr. Sumant Sinha, Founder, Chairman, and CEO of ReNew Power, said, “We are proud to partner with DCM Shriram, which is showing leadership is moving to cleaner sources of energy and in addressing broader climate issues, as well as in supporting India’s ambitious climate goals.
We are confident that more and more responsible corporates such as DCM Shriram will move to renewables at an accelerated pace, as it not only shows a focus on sustainability concerns that are critical but also reflects that green energy is increasingly cost-effective for businesses,” Sumant added.
The 50-MW hybrid project, which, overall, has ~100 MW of wind and solar generation capacity at its backend, is expected to generate ~250 million units of renewable energy every year exclusively for the DCM Shriram’s Bharuch facility.
ReNew will be setting up the two hybrid projects with a total investment of ~ ₹8 billion through an equity partnership of ~ ₹630 million by DCM Shriram Ltd.